-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the 4th worker?

Question

Quizplus · Accepted Answer

The value of the marginal product is calculated by multiplying the marginal product of the worker by the price of the product. If the 4th worker increases output by 10 units and the price is $5, then the value of the marginal product is 10 * $5 = $50.

-Winnie's Car Wash Is a Perfectly Competitive Firm